DUSHANBE, December 22, 2009, Asia-Plus — President Emorali Rahmon yesterday received Mr. Chen Xinhe (phonetically spelled), Chairman of China’s gold mining company, Zijin Mining, which assumes the 75 percent ownership interest in the joint gold mining venture, Zeravshan Gold Company (ZGC).
According to presidential press service, the two discussed issues related to cooperation in the field of mining, including mining gold and other precious metals.
In the course of the talks, Chen informed Rahmon of activity of ZGC. According to him, production of gold at the Taror deposit, which is operated by ZGC, will have reached 800 kilograms this year and in the coming three years, production of gold at the Taror deposit will exceed 4-5 tons per years. In 2010, they plan to produce 1.5 tons of gold at this deposit.
Mr. Chen noted that his company has invested more than 100 million U.S. dollars in ZGC so far and plans to increase investments in Tajikistan’s mining industry in the future.
President Rahmon stressed the necessity of training of local personnel for mining industry and provision of the gold mining production with modern technologies.
More than 1,500 Tajik nationals now work for ZGC for good wages, the press service noted.
According to international media, Zijin Mining acquired a 75 per cent stake in ZGC for $55 million in June 2007. ZGC owns gold mining and exploration rights to a 300,000-hectare area near the town of Panjakent in northern Tajikistan.
ZGC was launched as a joint venture with Nelson Resources Ltd (44%) and the Tajikistan government (51%) and the IFC (5%) in 1994. In September 2002, Avocet signed a heads of agreement to acquire the Tajik gold assets of Toronto-based Nelson Resources Ltd held through Nelson”s subsidiary, Commonwealth and British Minerals Ltd. The assets included a 44% interest in Zeravshan Gold. In November 2004, Avocet increased its equity interest in ZGC from 49% to 75%.
